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Igor Levit, CEO of LSR Group commented:
«Moscow and the Moscow region, the largest real estate market in Russia, has always been one of the key target regions for our business development. We entered Moscow market already in 2001; however, the volume of our activities in Moscow has been limited since we chose to avoid land acquisition at overheated prices. Today we see the opportunities for land acquisitions and participation in investment agreements at favorable conditions, which enable us to ensure significant growth of our real estate development business in Moscow and the Moscow region.”
According to the contract terms, CJSC Mosstroyrekonstruktsiya is to construct a mass market residential neighbourhood on this land of 190 thousand square meters of net sellable area, including high, middle and low-rise houses of EURO’Pa series produced by OJSC Zavod ZhBI-6 (a subsidiary of LSR Group).
The total amount of investment by CJSC Mosstroyrekonstruktsiya into the project is estimated at RUR 8 billion in the form of design work, supplies of own reinforced concrete items, housing and internal communications construction. According to the contract terms, 80% of all residential areas in the new neighbourhood – 152 thousand square meters – will be transferred to CJSC Mosstroyrekonstruktsiya ownership for subsequent sale to end customers. The rest will be transferred to the investment contract counterparty as a reimbursement of the contribution of rights for land plots to be developed.
The new neighbourhood is to be built in Nakhibino, 16 km away from Moscow, in the north-west direction, with well-developed public and transport infrastructure. The district is connected with the centre of Moscow via two motorways – Volokolamskoe Shosse and Novorizhskoye Shosse.
The residential neighbourhood will consist of low-rise EUROhouses of approximately 38 thousand square meters of net sellable area, and also of middle-rise and high-rise houses of the EURO’Pa series of net sellable area of approximately 150 thousand square meters.
Start of construction of the low-rise residential neighbourhood is planned in summer and completion this year. The whole project of 44 hectares is expected to be developed in 5 years.
Note to Editors:
OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, real estate development and panel construction.
LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine.
In 2008, the sales revenues of LSR Group were RUR 49,813m (IFRS). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.
CJSC Mosstroyrekonstruktsiya is an investment and construction company founded in 2001. In 2007, the company completed its first project, the Dom na Davydkovskoy business class residential complex. Currently the company is completing a unique project, the Grunwald elite residential development, and is also designing a new multi-purpose business complex New Balchug at Sadovnicheskaya Street, 500 m from the Kremlin. In 2008, the company has strengthened its presence in Moscow’s real estate market through the acquisition of property complex at Leningradskoye Shosse. In 2009 Mosstroyrekonstruktsiya became a subcontractor to construct a residential neighbourhood for the military personnel in Balashikha for the use by the RF Ministry of Defence.
OJSC Zavod ZhBI-6, a subsidiary of LSR Group, is a leader in reinforced concrete production in Moscow. Established in 1955, it was merged with LSR Group in 2006.
The production capacity of the plant working double shift is 170,000 cub.m of reinforced concrete per year, with a total of 15 million cub.m of products manufactured over the years of its operation.
The use of flexible reconfiguration schemes enables the plant to promptly produce large quantities of reinforced concrete items. The plant is also capable of manufacturing non-standards products by virtue to its design office that complies with customer’s drawings. The company offers over 1,500 reinforced concrete items including those used for housing and commercial property construction.
In 2009 Zavod ZhBI-6 supplied reinforced concrete items and ready-mix concrete to construction objects and became an exclusive producer of reinforced concrete for a new series of EuroPa houses.
The core business area of the company is fulfilling public procurement orders through supplying its products for the construction of government buildings and social and transport infrastructure. The products turned out by ZhBI-6 have been used for the construction and renovation of the White House (headquarters of the Council of Ministers of Russia), Mayor’s Office in Moscow, Olympic Games Complex, Poklonnaya Gora Memorial Complex, Tsaritsyno Museum-Reserve, Izvestiya Publishing House, Third Transport Ring, Moscow City International Business Centre.
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